Shareholders approve N3b new capital, asset sale for May & Baker

MAY & Baker Nigeria Plc will soon launch its much-awaited rights issue as shareholders of the healthcare at the Annual General Meeting in Lagos approved the increase in the authorised share capital of the company to three billion naira.

At the meeting, shareholders voted unanimously to increase the authorised share capital from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to three billion naira of six billion ordinary shares of 50 kobo each. Shareholders also authorised the board of the company to sell or lease any one of the company’s two properties located at Sapara Street, Ikeja.

Shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital. The shareholders at the Annual General Meeting of 2014 had given approval for the recapitalization of the business through the injection of fresh equity capital into the business.

Addressing the shareholders, Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said the board of the company believes that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

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According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

He pointed out that in line with its new vision and following shareholders’ approval given at the Extra-Ordinary General meeting in November 2017, the company has successfully completed the divestment from its noodles business in the first quarter of 2018, adding that the gain from the divestment will be recorded in the current year results.

He said streamlining the company’s activities along its core area of healthcare will put it in a position to deliver stronger profits in the future.

He noted the improved performance of the group’s businesses as operating subsidiary – Osworth Nigeria Limited grew its revenue by 29 per cent from N165 million in 2016 to N213 million in 2017 and grew profit after tax by 80 per cent from N7.6 million in 2016 to N13.7 million in 2017.

“I am equally pleased to report more good news on the progress made with Biovaccines Nigeria Limited, our Joint Venture project with the Federal Government for the production of vaccines. The board of Biovaccines was inaugurated on January 19th 2018 and the company is gearing fast to commence business. I am optimistic that this investment will succeed not only to the benefit of investors but also for the good of the country,” Danjuma said.